Technical Efficiency Through Innovative Methods and Estimations in Financial Markets

2021 ◽  
pp. 55-70
Author(s):  
Aikaterini Kokkinou
Keyword(s):  
Financial Markets ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Productive Efficiency ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Parametric Data ◽  
Efficiency Estimation ◽  
Non Parametric

This paper investigates technical efficiency estimation in financial markets, using both parametric and non-parametric techniques: parametric Stochastic Frontier Analysis (SFA) approach or non-parametric Data Envelopment Analysis (DEA). This chapter focuses on reviewing the stochastic frontier analysis literature regarding estimating inefficiency in financial markets level, as well as explaining producer heterogeneity along with the relationships with productive efficiency level. This chapter investigates technical efficiency estimation in financial markets, using both parametric and non-parametric techniques: parametric Stochastic Frontier Analysis (SFA) approach or non-parametric Data Envelopment Analysis (DEA). More specifically, this chapter focuses on reviewing the stochastic frontier analysis literature regarding estimating inefficiency, its industrial level, as well as explaining producer heterogeneity along with the relationships with productive efficiency level.

scholarly journals Farm Structure And Efficiency In The Hungarian Agriculture

2015 ◽  
Vol 4 (2) ◽  
pp. 51-56
Author(s):  
Orsolya Tóth ◽  
István Takács
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Farm Size ◽  
Empirical Literature ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Parametric Data ◽  
Legal Forms ◽  
On Farm

Abstract It has long been the subject of empirical researches to examine the technical efficiency on farm (micro) level. Two main methods are most often used in the empirical literature: the non-parametric Data Envelopment Analysis (DEA) based on linear programming, and the Stochastic Frontier Analysis (SFA) introduced by Aigner, Lovell and Schmidt (1977). The present study aimed to investigate the technical efficiency of farms involved in agricultural activities in Hungary using the DEA-method and the data from the Hungarian FADN database. The technical efficiency was examined based on legal forms, farm size categories and the type of farming between 2001 and 2013.

scholarly journals Evaluation of the technical efficiency in the production of National Cocoa in the main cantons of the province of Guayas

2021 ◽  
Vol 25 (110) ◽  
pp. 14-22
Author(s):  
Martha Bucaram Levarone ◽  
Francisco Quinde Rosales ◽  
Joy Mayorga Ramos ◽  
Martha Bueno Quinonez
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Productive Efficiency ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Simon Bolivar ◽  
Non Parametric

A comparative analysis of the technical efficiency in the production of national cocoa among the main producing cantons of the province of Guayas was carried out. For this, the study was based on an analysis with inductive reasoning and empirical-analytical paradigm, through the elaboration of surveys to 361 UPA's in the cantons of: Milagro, San Jacinto de Yaguachi, El Empalme, Alfredo Baquerizo Moreno, Naranjal and Simón Bolívar; these data served as the basis for the elaboration of the Data Envelopment Analysis (DEA) model. The results show that on average, the Simón Bolívar canton is the canton with the highest technical efficiency, with 50% of the total UPAs surveyed in the range of 70% and 99% effectiveness. Finally, regarding the observed averages of allocative efficiency, it can be concluded that Jujan has the highest average with 75%. Keywords: Technical and Allocative Efficiency, National Cocoa, Enveloped Data Analysis, Non Parametric Method. References [1]M. Naranjo., «Un Puerto en busca de una Nación, Guayaquil y la idea fundacional del Ecuador como país,» de Seminario Internacional Poder, Política y Repertorios de la Movilización Social en el Ecuador Bicentenario, Quito, 2009. [2]S. C. Mogro, V. Andrade-Díaz y D. P.-. Villacís, «Posicionamiento y eficiencia del banano, cacao y flores del Ecuador en el mercado mundial,» Revista Ciencia UNEMI, vol. 9, nº 19, pp. 48-53, 2016. [3]M. Vassallo, Diferenciación y agregado de valor en la cadena ecuatoriana del cacao, Quito: Editorial IAEN, 2015. [4]M. Pigache y S. Bainville, Cacao tipo ‘Nacional’ vs. Cacao CCN51: ¿Quién ganará el partido?, Quito: Ird Editions, 2007. [5]M. Chiriboga, Jornaleros, grandes propietarios y exportación cacaotera, Quito: Universidad Andina Simón Bolívar, 2013. [6]A. Acosta., Breve Historia Económica del Ecuador, Quito: Editora Nacional, 2006. [7]M. Espinoza y Y. Arteaga., «Diagnóstico de los Procesos de Asociatividad y la Producción de Cacao en Milagro y sus sectores aledaños,» Revista Ciencia UNEMI, vol. 8, nº 14, pp. 105-112, 2015. [8]E. Romero, M. Fernández, J. Macías y K. Zúñiga, «Producción y comercialización del cacao y su incidencia en el desarrollo socioeconómico del cantón Milagro,» Revista Ciencia UNEMI, vol. 9, nº 17, pp. 56-64, 2016. [9]e. I. I. d. C. A. Ministerio de Agricultura y Ganadería, La Agroindustria en el Ecuador. Un diagnóstico integral, Quito: IICA, 2006. [10]R. Rodríguez, M. Brugiafreddo y E. Raña., «Eficiencia técnica en la agricultura familiar: Análisis envolvente de datos (DEA) versus aproximación de fronteras estocásticas (SFA),» Nova Scientia, vol. 9, nº 18, pp. 342-370, 2017. [11]A. Resti., «Evaluating the cost-efficiency of the Italian banking system: what can be learned from the joint application of parametric and non-parametric techniques,» Journal of Banking & Finance, vol. 21, nº 2, pp. 221-250, 1997. [12]T. Coelli y S. Perelman, «A Comparison Of Parametric And Non-Parametric Distance Functions: With Application To European Railways,» European Journal Of Operational Research, vol. 117, nº 2, pp. 326-339, 1999. [13]B. Iráizoz, M. Rapún y I. Zabaleta., «Assessing the technicalb efficiency of horticultural production in Navarra, Spain,» Agricultural Systems, vol. 78, nº 3, pp. 387-403, 2003. [14]K. Sharma, S. Ping y H. Zaleski., «Productive efficiency of the swine industry in Hawaii,» Research Series, vol. 77, pp. 1-24, 1996. [15]D. Tingley, S. Pascoe y L. Coglan, «Factors affecting technical efficiency in fisheries: Stochastic Production Frontier versus Data Envelopment Analysis approaches,» Fisheries Research, vol. 73, nº 3, pp. 363-376, 2005. [16]H. Johansson, «Technical, allocative and economic efficiency in Swedish dairy farms: the Data Envelopment Analysis versus the Stochastic Frontier Approach,» de Poster background paper prepared for presentation at the XIth International Congress of the European Association of Agricultural Economists (EAAE), Copenhagen, 2005. [17]F. Madau, «Technical and scale efficiency in the Italian Citrus Farming: A comparison between Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA) Models,» Munich Personal RePEc Archive (MPRA), vol. 41403, nº 18, pp. 1-25, 2012. [18]E. A. S. d. Pedro, Nivel de competitividad y eficiencia de la producción ganadera, Córdoba: Tesis doctoral. Departamento de Producción Animal, 2013. [19]F. Bacon, Novum Organum, Londres, 1620. [20]Seminario Metodología de la Investigación, Bogota: Facultad de Ciencias Económicas, Universidad Nacional de Colombia, 2015.  

scholarly journals Sensitivity of technical efficiency estimates to estimation methods: an empirical comparison of parametric and non-parametric approaches

2014 ◽  
Vol 8 (1) ◽  
pp. 67-72 ◽  
Author(s):  
Henry de-Graft Acquah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Ordinary Least Squares ◽  
Estimation Methods ◽  
Strong Positive Correlation ◽  
Production Frontier ◽  
Frontier Analysis ◽  
Parametric Data ◽  
Non Parametric

This paper highlights the sensitivity of technical efficiency estimates to estimation approaches using empirical data. Firm specific technical efficiency and mean technical efficiency are estimated using the non parametric Data Envelope Analysis (DEA) and the parametric Corrected Ordinary Least Squares (COLS) and Stochastic Frontier Analysis (SFA) approaches. Mean technical efficiency is found to be sensitive to the choice of estimation technique. Analysis of variance and Tukey’s test suggests significant differences in means between efficiency scores from different methods. In general the DEA and SFA frontiers resulted in higher mean technical efficiency estimates than the COLS production frontier. The efficiency estimates of the DEA have the smallest variability when compared with the SFA and COLS. There exists a strong positive correlation between the efficiency estimates based on the three methods.  

scholarly journals Labour efficiency in construction industry in Europe based on frontier methods: data envelopment analysis and stochastic frontier analysis

2017 ◽  
Vol 23 (6) ◽  
pp. 787-795 ◽  
Author(s):  
Joanicjusz NAZARKO ◽  
Ewa CHODAKOWSKA
Keyword(s):  
Data Envelopment Analysis ◽  
Construction Industry ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Analysis ◽  
European Countries ◽  
Personnel Cost ◽  
Data Envelopment ◽  
Frontier Analysis

The primary problems pertaining to productivity or – more precisely – efficiency are: how to define it and how to measure it. This article studies technical efficiency in Stochastic Frontier Analysis (SFA) – the input-oriented frontier model – in the construction industry and compares it with Data Envelopment Analysis (DEA) results. The models ex­plored in this paper were constructed on the basis of two outputs and personnel cost as an input. The research sample consisted of European countries. The aim was to determine whether there are substantial differences in estimation of ef­ficiency derived from those two alternative frontier approaches. The comparison of results according to the models may translate into higher reliability of the undertaken labour efficiency analysis in construction and its conclusions. Although the results are not characterized by high compatibility, the conducted analysis indicated the most attractive countries taking into account labour cost to profit and turnover ratios of enterprises. One of the determinants which should not be ignored when analysing the labour efficiency is the level of development of a country; however, it is not the sole factor affecting the efficiency of the sector.

scholarly journals A Novel Hybrid Parametric and Non-Parametric Optimisation Model for Average Technical Efficiency Assessment in Public Hospitals during and Post-COVID-19 Pandemic

2021 ◽  
Vol 9 (1) ◽  
pp. 7
Author(s):  
Mirpouya Mirmozaffari ◽  
Reza Yazdani ◽  
Elham Shadkam ◽  
Seyed Mohammad Khalili ◽  
Leyla Sadat Tavassoli ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Financial Stability ◽  
Stochastic Frontier Analysis ◽  
Parametric Method ◽  
Stochastic Frontier ◽  
Integrated Approach ◽  
Public Hospitals ◽  
Statistical Testing ◽  
Frontier Analysis ◽  
Non Parametric

The COVID-19 pandemic has had a significant impact on hospitals and healthcare systems around the world. The cost of business disruption combined with lingering COVID-19 costs has placed many public hospitals on a course to insolvency. To quickly return to financial stability, hospitals should implement efficiency measure. An average technical efficiency (ATE) model made up of data envelopment analysis (DEA) and stochastic frontier analysis (SFA) for assessing efficiency in public hospitals during and after the COVID-19 pandemic is offered. The DEA method is a non-parametric method that requires no information other than the input and output quantities. SFA is a parametric method that considers stochastic noise in data and allows statistical testing of hypotheses about production structure and degree of inefficiency. The rationale for using these two competing approaches is to balance each method’s strengths, weaknesses and introduce a novel integrated approach. To show the applicability and efficacy of the proposed hybrid VRS-CRS-SFA (VCS) model, a case study is presented.

scholarly journals Efficiency Of Biomass Production – Methodological Approaches

2015 ◽  
Vol 4 (1) ◽  
pp. 2-6 ◽  
Author(s):  
Tatiana Svetlanská ◽  
Natália Turčeková ◽  
Izabela Adamičková
Keyword(s):  
Data Envelopment Analysis ◽  
Biomass Production ◽  
Economic Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Parametric Data ◽  
Methodological Approaches ◽  
On Farm

Abstract The article investigates methodological approaches towards economic efficiency, which may be applicable in case of biomass production with emphasis on agricultural biomass production – energy crops. The selected methods are: parametric stochastic frontier analysis (SFA) and non-parametric data envelopment analysis (DEA), which are suitable for efficiency measurement in agriculture. The study is organized in four sections. Introduction provides brief report on issues related to biomass production and term efficiency. Both methods (models) are shortly described in the material and methods chapter. In this part, bio-economy efficiency is shortly depicted as a modification of environmental efficiency. The results and discussion part explains limitations of models, inputs and outputs in terms of biomass production. The conclusion sums up the application of models. The results suggest the use of SFA on sector level and the use of DEA on farm level or regions basis.

scholarly journals THE EFFICIENCY OF LARGE AND MEDIUM SCALE OF THE FOOD AND BEVERAGE INDUSTRIAL PRODUCTION IN EAST JAVA: DATA ENVELOPMENT ANALYSIS (DEA) AND STOCHASTIC FRONTIER ANALYSIS (SFA) APPROACHES

2021 ◽  
Vol 2 (2) ◽  
pp. 139-157
Author(s):  
Shochrul Rohmatul Ajija ◽  
Mohammad Zeqi Yasin ◽  
Jarita Duasa
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Beverage Industry ◽  
Food And Beverage Industry ◽  
Food And Beverage ◽  
Dea Method

This study aims to estimate the technical efficiency of food and beverage industry in East Java in 2011 to 2013 using micro data at the company level. Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA) are used to estimate technical efficiency. The output variable was the value of production, while input variables were capital, labor, raw material, and energy. The Likelihood Ratio test dictates that the Translog production function is more appropriate for use in this study. The estimation results show that the efficiency of food and beverage companies in East Java by using SFA has decreased significantly by 3.02%, whereas with the DEA method, the average technical efficiency has increased by 0.583% compared to the beginning of the year in 2011. In addition, there is difference in the efficiency value between SFA and DEA. The technical efficiency value of SFA calculation is greater than that of DEA. The dissimilarity is caused by the difference of specification in both methods related to the interaction between uncaptured variables in the DEA method. The results of this policy have implications on the government's obligation to pay attention to the food and beverage industry in order to suppress the company’ various operating costs, such as maintenance for old machines, which has an impact on on technical efficiency or improve the ability of labor in terms of machinery utilization. Therefore, in the following year, the performance of the food and beverage industry as the largest sub-sector in manufacturing is able to show the progress.

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